Title: WTO Presentation
1 WTO-AoA NEGOTIATIONS STATE OF PLAY
2GENESIS
- WTO Came into existence on 1-1-1995 with the
conclusion of Uruguay Round Multilateral Trade
Negotiations at Marrakesh on 15th April 1994, to
-
- Provide common institutional framework for
conduct of trade relations among members - Facilitate the implementation, administration and
operation of Multilateral Trade Agreements - Lay down Rules and Procedures Governing Dispute
Settlement - Provide Trade Policy Review Mechanism
3Agreement on Agriculture (AoA)
- To establish a fair and market oriented
agricultural trading system through substantial
progressive reduction in agricultural support and
protection resulting in correcting and preventing
restrictions and distortions in world
agricultural markets.
4AREAS OF COMMITMENTS
- Domestic Support i.e. subsidies by
Governments to domestic producers
- Market Access i.e. the disciplines on import
restraints and tariffs and
- Export Competition i.e. export subsidies and
other forms of export subsidisation.
5Domestic Support
- Green Box - Research, Extension, PDS,
Decoupled Payments
etc - Blue Box - Production Limiting Subsidies
- Amber Box - AMS-subject to reduction
commitments viz - - Product specific (MSP)
- - Non product specific (input subsidies-fert.
Power, - irrigation)
- Total Agricultural support reduction (Base
period 1986-88) - Developed countries 20 (1995 - 2000)
- Developing countries 14 (1995 - 2004)
- De-minimis level
- Developed countries 5
- Developing countries 10 .
6Market Access
- All non-tariff barriers including, Quantitative
Restrictions to be abolished
- Tariff cut Commitments
- Developed countries - Average 36
- Minimum 15 (1995
- 2000) - Developing countries - Average 24
- Minimum 10
(1995 - 2004)
7IMPACT ON INDIA (Market Access)
-
- Bound tariff levels for India
- Primary products 100 Processed products
150 Edible oils 300 - (Some exceptions (119 items) are governed by
other provisions of GATT Art.II 1(b).
8Export Subsidies
- Cut in value of subsidies
- Developed countries - 36 (1995 - 2000)
- Developing countries - 24 (1995 - 2004)
- Cut in subsidised quantities
- Developed countries - 21 (1995 - 2000)
- Developing countries - 14 (1995 - 2004)
- (Base Period (1986 - 1990)
-
- To develop internationally agreed
disciplines to govern - export credits, guarantees or insurance
programmes.
9Doha Ministerial Conference
Fourth Ministerial Conference on WTO was held at
Doha, Qatar from 9-13th November 2001 This
conference, inter alia, reviewed the progress of
AoA negotiations and provide guidelines for
future. The Ministers at Doha committed
themselves to negotiation aimed at substantial
improvement in market access, substantial
reduction in trade distorting domestic support
and gradual phasing out of export subsidies.
The special and differential treatment - an
integral part of the mandated agricultural
negotiations.
10India Seeks
- Protecting our food and livelihood security by
having sufficient flexibility for domestic policy
measures. - Protecting domestic producers from the surge in
imports or significant decline in import prices. - Substantial reduction in export subsidies and
domestic support to agriculture in the developed
countries for greater market access to products
of developing countries. - Finally, a more equitable fair trading
framework for - agricultural commodities
- MARKET ACCESS ISSUES CAN NOT BE SEEN IN ISOLATION
TO SUBSIDY REGIME
11Present Stage of Negotiations
- The third phase of negotiations ended in
March-2003. - As per original schedule, the modality of the
Agreement were to be established by 31.03.2003. - The deadline for establishment of Modality has
been missed - In the last one year a number of drafts for
establishment of Modality have been proposed - The major drafts include, Harbinsons original
and revised draft, US-EU combined draft, Original
Cancun Draft and the Derbez Text (Cancun revised
draft )
12Present Stage of Negotiations
- The Cancun Ministerial failed to arrive at any
agreement on modality for agriculture. - There was no willingness on part of developed
countries to recognize the genuine concerns of
the developing countries, especially in
agriculture - The US EU attempted to drive their own agenda,
at the expense of Doha Declaration - The concerns of the developing countries were
expressed by a group viz. G-20 at Cancun. - India, China, Brazil, Argentina and South Africa
were the moving spirits behind the formation of
this Group.
13Present Stage of Negotiations
- Some of important features of the two Harbinson
Drafts are as follows - Includes the crucial numbers. Framework proposes
modalities. - Tariff reduction higher than Uruguay Round, using
the concept of average and minimal reductions
based on tariff bands. - Introduction of a new concept of Special Products
for developing countries, average tariff
reduction on SP to be at 10, and minimum
reduction, 5. - Introduction of Safeguard Mechanism for
developing countries.
14Present Stage of Negotiations
- Reduction mainly in the amber box support by
developed countries. - Reduction in the De-minimis support for
developed countries - Proposals only to discipline the Blue Box
payments, no reduction. - Proposals to tighten the criteria for Green Box
payments for developed countries, expansion of
Green Box for developing countries - Elimination of direct export subsidies over a
longer period. Indirect subsidies no final
proposal
15Present Stage of Negotiations
- The SD for the developing countries remains on
the lines as Uruguay Round. - The SD for developing countries include, a
marginally lower rate of tariff reduction, a
longer implementation period, provision of
Special Products with lower tariff reduction,
provision of Safe guard mechanism, retention of
provisions at para 6.2 of the present AoA, with
possible widening and retention of de-minimus in
Amber Box Support
16Present Stage of Negotiations
- The US-EU draft, and the two Cancun drafts are
similar in nature and their main features are - The drafts propose only a framework. They dont
indicate the key numbers - Aggressive reductions in tariff by using a hybrid
formula. Swiss formula to be a component of the
hybrid formula - Reduction for developing countries also to be by
same formula, with lower final commitment. - SPs to be limited in numbers.
17Present Stage of Negotiations
- Reduction mainly in the amber box support by
developed countries. - Reduction in the De-minimis support for
developed countries. - Capping of product specific support in Amber Box
- Expansion of Blue box by inclusion of direct
payments. - Capping of the expenditure under new Blue Box,
with a possible phased reduction over the
implementation period. - No reduction in Green Box payments. The criteria
for Green Box payments may possibly be reviewed. - Reduction commitments for developing countries
lower with longer implementation period.
18Present Stage of Negotiations
- The provisions of Article 6.2 to be continued.
- The de-minimus for the developing countries to be
retained at 10. - Elimination of export subsidies over an extended
period during the implementation period. - The trade distorting elements of export credit to
be similarly treated. - No specific timeframe for elimination suggested.
19Indias stand on various drafts
- The drafts fail to recognize the inter-linkages
in the three pillars of AoA. - The reductions suggested in domestic support are
minimal, as compared to the steep reduction in
tariff included in the Draft. - The drafts fail to recognize the food security
and livelihood concerns of the developing
countries. - The drafts are not meeting the spirit of Doha
Development Agenda.
20Developments Post-Cancun Ministerial
- The G-20 has survived the pressures of the
developed countries and almost remained united on
agriculture issues. - The Cancun process led to loss of confidence of
developing countries in the developed countries. - The negotiations have formally not yet started at
Geneva. - The stress, at present is more on arriving at
bilateral understandings. - G-20 had bi-laterals with EU, one in Brazil and
other in Geneva. - India has had separate bilateral discussions with
USA as well as EU.
21Thank You